Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

European stocks eye worst week since October, Ericsson surges

Stock MarketsJan 29, 2021 04:55AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. The German share price index DAX graph is pictured at the stock exchange in Frankfurt

By Sruthi Shankar

(Reuters) - European stocks were lower on Friday and on course for their worst weekly performance since October, as concerns around the slow rollout of COVID-19 vaccines mount and a retail trading frenzy gripped Wall Street this week.

The benchmark STOXX 600 index dropped 1.0%, set to erase all of January's gains and end the week down 2.4%

London's blue-chip FTSE 100 and Germany's DAX fell by similar amounts, while on Wall Street, S&P 500 futures and Nasdaq 100 futures shed almost 1% each [MKTS/GLOB].

The U.S. stock market, already looking overvalued after a stimulus-led rally last year, has been jolted this week by steep gains in heavily shorted stocks, including Gamestop and AMC Entertainment (NYSE:AMC) after retail traders piled into them.

Concerns around the potential economic damage from a new strain of the coronavirus in Europe and delays to vaccine rollouts have also dented sentiment in the past few days.

"We're postponing the recovery story a little bit because of the lockdown measures and challenges for European growth," said Joseph Little, global chief strategist at HSBC Global Asset Management, London.

"I'm still optimistic on parts of Europe which have lagged rather badly, economically and in markets. They could begin to perform as the cyclical catch-up becomes more important."

However, economy-linked stocks of banks, insurers, miners and oil & gas companies were among the worst hit this week as economic data pointed to a stuttering European economy due to tighter restrictions.

Official data showed Germany grew by just 0.1% in the fourth quarter as a second wave of coronavirus cases almost stopped Europe's largest economy in its tracks after a surging third-quarter recovery.

Meanwhile in France, the economy contracted much less than expected at the end of last year.

In a busy day for earnings, Sweden's Ericsson (BS:ERICAs) jumped 8.1% after reporting fourth-quarter core earnings ahead of market estimates on the back of strong sales of 5G equipment.

Swedish fashion retailer H&M slipped 4.0% after its profit plummeted in the full year through November and warned that the pandemic would hit it hard in the current quarter.

Daimler (OTC:DDAIF) rose 1.6% after it said a strong fourth quarter helped it post better-than-expected 2020 group operating profit and that it was optimistic for 2021.

European earnings season has been largely positive. Of the 8% of STOXX 600 companies that have reported so far, 78% have topped beaten-down profit estimates, as per Refinitiv IBES data.

European stocks eye worst week since October, Ericsson surges
 

Related Articles

Apple backs far-reaching emissions disclosure rules
Apple backs far-reaching emissions disclosure rules By Reuters - Apr 13, 2021 1

By Ross Kerber (Reuters) - Apple Inc (NASDAQ:AAPL) on Tuesday called for the U.S. Securities and Exchange Commission (SEC) to require companies to disclose emissions including...

Opendoor Gains After Cathie Wood's ARK Buys Shares
Opendoor Gains After Cathie Wood's ARK Buys Shares By Investing.com - Apr 13, 2021

By Dhirendra Tripathi Investing.com – Opendoor Technologies Inc (NASDAQ:OPEN) shares rose more than 4% Tuesday, buoyed by Cathie Wood’s Ark Invest active ETFs, which adding 633,400...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email